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Vulnerability and Coping to Disasters: A Study of Household Behaviour in Flood Prone Region of India

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  • Narayanan K
  • Unmesh Patnaik

Abstract

This paper attempts to understand the various risks faced by households living in disaster prone regions of rural India and specifically examine the effectiveness of coping mechanisms adopted by households living in these areas to hedge against the risks. The study area (districts of eastern Uttar Pradesh, India) is highly susceptible to floods with a major flood occurring every ten years and smaller ones happening every one-two years. The data is drawn from primary household surveys undertaken in the study area for flood affected households. The analysis is carried out using a risk sharing and self insurance framework and econometric modeling is carried out using binary outcomes and multivariate probit estimation through GHK (Geweke- Hajivassiliou- Keane) estimator.

Suggested Citation

  • Narayanan K & Unmesh Patnaik, 2010. "Vulnerability and Coping to Disasters: A Study of Household Behaviour in Flood Prone Region of India," Working Papers id:2470, eSocialSciences.
    • Handle: RePEc:ess:wpaper:id:2470
    Note: Institutional Papers
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    References listed on IDEAS

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    5. Mace, Barbara J, 1991. "Full Insurance in the Presence of Aggregate Uncertainty," Journal of Political Economy, University of Chicago Press, vol. 99(5), pages 928-956, October.
    6. Yasuyuki Sawada, 2007. "The impact of natural and manmade disasters on household welfare," Agricultural Economics, International Association of Agricultural Economists, vol. 37(s1), pages 59-73, December.
    7. Yasuyuki Sawada & Satoshi Shimizutani, 2007. "Consumption insurance against natural disasters: evidence from the Great Hanshin-Awaji (Kobe) earthquake," Applied Economics Letters, Taylor & Francis Journals, vol. 14(4), pages 303-306.
    8. Cochrane, John H, 1991. "A Simple Test of Consumption Insurance," Journal of Political Economy, University of Chicago Press, vol. 99(5), pages 957-976, October.
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    Cited by:

    1. Anu Susan Sam & Ranjit Kumar & Harald Kächele & Klaus Müller, 2017. "Vulnerabilities to flood hazards among rural households in India," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 88(2), pages 1133-1153, September.
    2. Noy, Ilan & Karim, Azreen, 2013. "Poverty, inequality and natural disasters – A survey," Working Paper Series 2974, Victoria University of Wellington, School of Economics and Finance.
    3. Omvir Singh & Hawa Singh, 2015. "The response of farmers to the flood hazard under rice–wheat ecosystem in Somb basin of Haryana, India: an empirical study," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 75(1), pages 795-811, January.
    4. De Silva, M.M.G.T. & Kawasaki, Akiyuki, 2018. "Socioeconomic Vulnerability to Disaster Risk: A Case Study of Flood and Drought Impact in a Rural Sri Lankan Community," Ecological Economics, Elsevier, vol. 152(C), pages 131-140.
    5. Karim, Azreen, 2016. "The household response to persistent natural disasters: Evidence from Bangladesh," Working Paper Series 4968, Victoria University of Wellington, School of Economics and Finance.
    6. Vito Frontuto & Silvana Dalmazzone & Francesco Salcuni & Alessandro Pezzoli, 2020. "Risk Aversion, Inequality and Economic Evaluation of Flood Damages: A Case Study in Ecuador," Sustainability, MDPI, vol. 12(23), pages 1-17, December.
    7. Azreen Karim & Ilan Noy, 2016. "Poverty And Natural Disasters — A Qualitative Survey Of The Empirical Literature," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 61(01), pages 1-36, March.
    8. Karim, Azreen, 2018. "The Household Response to Persistent Natural Disasters: Evidence from Bangladesh," World Development, Elsevier, vol. 103(C), pages 40-59.
    9. Ali Naqvi & Miriam Rehm, 2014. "A multi-agent model of a low income economy: simulating the distributional effects of natural disasters," Journal of Economic Interaction and Coordination, Springer;Society for Economic Science with Heterogeneous Interacting Agents, vol. 9(2), pages 275-309, October.
    10. Narayanan, K. & Sahu, Santosh Kumar, 2011. "Health, income inequality and climate related disasters at household level: reflections from an Orissa District," MPRA Paper 35028, University Library of Munich, Germany.
    11. Noy, Ilan & Karim, Azreen, 2013. "Poverty, inequality and natural disasters – A survey," Working Paper Series 18793, Victoria University of Wellington, School of Economics and Finance.

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    More about this item

    Keywords

    multivariate probit estimation; consumption; risk; Vulnerability; livelihoods; developing countries; climate; disasters; rural; Uttar Pradesh; India; floods; households; insurance; econometric modelling;
    All these keywords.

    JEL classification:

    • C12 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Hypothesis Testing: General
    • C81 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Methodology for Collecting, Estimating, and Organizing Microeconomic Data; Data Access
    • D1 - Microeconomics - - Household Behavior
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • C2 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables
    • C01 - Mathematical and Quantitative Methods - - General - - - Econometrics

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